The before tax operating was $3.3 million, up by 17 per cent on the corresponding period last year. The Ngatoro oilfield contributed $2.4 million to the result while Australian operations generated $349,000.

The result also included a $585,000 gain on the disposition of Pan Pacific Petroleum shares to NZOG shareholders.

"Ngatoro continues to provide a solid source of profit and cashflow for the company which we are looking to substantially build upon, with near term drilling, of the high potential onshore prospect at Optio and in the Ngatoro permit," NZOG executive chairman, Mr Tony Radford said.